iTalk Inc. (fka TALK)

[lloydm]

TALK and T Mobile will be joined together for a very long time. Based on the following report the model for T Mobile profitable is going through TALK and something called EIP.


Equipment installment plans let customers pay off their devices in installments, in many cases after paying $0 down up front. By giving away an expensive smartphone in the hopes that the customer will pay the cost of that back over time, carriers are employing a great deal of working capital to cover the up-front expense of the phones they are selling through EIP plans. All of those phone sales add up to billions of dollars. To mitigate the risk, carriers are looking to options like securitizing future EIP payments customers are expected to make.

"The magnitude of the working capital drag caused by the plans, and the benefits provided by factoring and securitizing the associated receivables is the primary motivation" for carriers embracing the financing alternatives, the Jefferies analysts noted.

"With sales on financing and leasing plans accounting for more half of all national carrier postpaid device sales in 2015, we estimate the four national wireless carriers will help subscribers finance over $37 billion of devices throughout the year, resulting in a cumulative equipment accounts receivable balance of $29 billion by year-end," they wrote. "Furthermore, we expect the total amount to continue rising with nearly $50 billion worth of devices sold on the plans in 2017, leading to more than $40 billion worth of cumulative working capital."

The Jefferies analysts noted that while accounts receivables factoring and securitization is not a new concept for the global telecommunications industry, T-Mobile's $500 million service payment receivable factoring facility in March 2014 was a first for a major U.S. carrier. Such facilities have been used globally by carriers like KPN, Deutsche Telekom, SoftBank and Telecom Italia. AT&T has factored more than $4.7 billion of gross equipment receivables throughout 2014, according to Jefferies.
http://www.fiercewireless.com/story/verizon-att-sprint-and-t-mobile-likely-finance-37b-devices-year-analysts-sa/2015-02-13


I am trying to understand EIP fully, but all I can see is a huge merger in the works with more and more subscriptions through CPDMOBILE.
http://cpdmobile.com/t-mobile

Take a look at the companies/products already aligned with CPDMOBILE
http://cpdmobile.com/products - bottom of page